The dollar enjoyed a small rebound today as investors bought back the greenback following its plunge to three-year lows.
The U.S. currency has been hurt by a variety of factors this year, including concerns that Washington might pursue a weak dollar strategy and the perceived erosion of its yield advantage as other countries start to scale back easy monetary policy.
Cable is looking to consolidate in the lower end of the recent range following Friday’s sharp drop, where it seems to have found some decent support in the 1.4000 area.
However, GBP should stay wary on the upcoming speech by Governor Carney later today, particularly after the hawkish tone delivered by the central bank at its latest meeting earlier in the month.
Prime Minister Theresa May made her case on Saturday for a new security treaty with the EU from next year, winning support from EU and U.S. officials who agreed the issue was too important to risk getting subsumed in broader Brexit negotiations.
In a speech to Western leaders and officials in Munich, May promised that London would continue to lead military missions and share intelligence